Treasurer Happy With Central Bank Modernisation

by PNG Business News - January 05, 2022

Photo credit: Post Courier - Treasurer Ian Ling-Stuckey

Treasurer Ian Ling-Stuckey is delighted with the work being done to put the modifications to the Central Banking Act into effect, which were voted unanimously by Parliament last December 2021.

Treasurer Ling-Stuckey stated in a statement that following the NEC's decision on a new Acting Governor, Benny Popoitai, the former Head of Financial Analysis and Supervisory Unit and former Deputy Governor, will be sworn in as Acting Governor.

This, according to Ling-Stuckey, is the beginning of the reform process to modernize BPNG by increasing governance, accountability, and independence.

“The reforms are the result of a comprehensive consultation process involving key firms and institutions in PNG, other central banks in our region and the IMF. The nation must say thank you to the Independent Advisory Group that led these consultations and their 132-page report on reform options.  

“The Government has carefully considered these recommendations and is now proposing specific reforms,” he said. 

It was regrettable, according to Treasurer Ling-Stuckey, that the former Governor refused to engage with the review process, declining several requests for meetings and failing to designate any BPNG officials to the review Secretariat.

“The former Governor wrote to the Prime Minister protesting the review. The time for his input was in the preparation of recommendations to the government from the IAG. He constantly declined to cooperate. It is disappointing that he is now claiming inadequate consultation with himself,” said Ling-Stuckey. 

He added further, “The government considered the recommendations of the IAG review and inputs on the recommendations were provided by the IMF, Treasury and eventually even BPNG.  

“These were considered by the government and built into the drafting instructions for the State Solicitor and the First Legislative Counsel. The changes received the unanimous support of the Parliament, including being praised by the Leader of the Opposition.”  

Treasurer Link-Stuckey urged the outgoing Governor to embrace Parliament's unanimous decision and facilitate a smooth transition to a revamped BPNG.


Reference: Loop (2 January 2021). “Modernising PNG’s Central Bank”. 

Related Articles


PNG Business News - June 14, 2021

BPNG Goes For Review

Treasurer Ian Ling-Stuckey has revealed the terms of reference for a review of the Bank of PNG, as well as the members of the review panel. Former Chief Secretary Robert Igara will lead the study, which was planned in the Supplementary Budget for 2020. Former central bank governor Sir Wilson Kamit and Australian professor Dr Stephen Howes are the two members. “These very eminent people, all of whom have detailed experience of the PNG financial system and reform, will be working to a term of reference approved recently by the NEC,” Ling-Stuckey said. “It is the first review of the central bank and the Central Banking Act 2002 since Sir Mekere Morauta’s financial system reforms when he was prime minister from 1999 to 2002.  “Much has changed since then, and the effects of the coronavirus pandemic, along with substantial technological advances, have made the need for a review even more urgent.  “The aim is to modernise the bank and the legislation in line with international developments, and make it more responsive to prevailing circumstances while preserving its independence.”  The study is scheduled to be finished in time for Parliament's November session. “An independent advisory group was also established by the late Sir Mekere when looking at the changes that led to the Central Banking Act 2000,” he said. “Igara, currently the University of Papua New Guinea chancellor, was chief secretary at the time, and Sir Wilson was the governor of the Central Bank. “Prof Howes, head of the Development Policy Centre at the Australian National University, has long been involved in PNG research and advice and consultation, particularly in relation to national development.”   Reference: The National (8 June 2021). “BPNG going for review”.


PNG Business News - August 23, 2021

Bakani Says to Increase Exports

Increased exports are the greatest way to boost PNG's foreign exchange. During the Certified Practising Accountants of PNG conference in Lae, Governor of the Bank of PNG, Loi Bakani, made this remark. The Momase and Highlands area conference of the Certified Practising Accountants of PNG began on Thursday at the Lae International Hotel. Bakani spoke on how the global economic crisis has affected PNG's foreign exchange market. During question time, one audience member brought out Kina's 41% depreciation from 2012 to 2020. Bakani reacted by claiming that export encouragement would have kept the Kina stable. “For us now to be able to support the foreign exchange, it means for us as advisers to look at ways of minimizing our imports,” he replied. “We encourage more exports. Minimizing imports will reduce the demand for foreign exchange, and that’s why the Kina can remain stable and if we have more foreign exchange coming in, the Kina will go up.” PNG, according to Bakani, is an "import-dependent country." While the current inflation rate is 3.3 percent, he explained that the unpleasant truth can be seen on store shelves. He feels that encouraging the agriculture sector and getting large projects like the Wafi-Golpu mine and Papua LNG off the ground are the best ways to alleviate PNG's financial load.   Reference: Gware, Carmelita. Loop (21 August 2021). “Increase exports, stresses Bakani”.


PNG Business News - August 30, 2021

BPNG: Headline Inflation to be About 4%

Photo Credit: UMM PNG The Bank of PNG (BPNG) expects headline inflation to be about 4% this year, down from 5.1 per cent in December of last year. The raw inflation amount provided by the consumer price index is known as headline inflation. Inflation in Papua New Guinea climbed from 2.9 per cent in 2019 to 5.1 per cent in December 2020, according to BPNG governor Loi Bakani. “This was because of the impact of the Coronavirus (Covid-19) pandemic with rising prices for seasonal products as the supply chain of some of these products went up and prices in medical services also increased,” he said. “We are lucky at the moment because inflation is not that high.” However, he said the rates did not reflect the real people faced every day. “This statistical indicator of what the movement of prices is over time, (and) does not tell you the real prices on the shelves, the markets, service fees,” Bakani said. “They are totally two different things.” He stated that the government continues to confront budgetary problems in 2020 as a result of poor tax collection and higher spending compared to 2019. Bakani attributed this year's economic rebound to the relaxation of lockdown measures, fiscal stimulus in key economies, vaccine rollouts in the second half of 2020, and new business models. However, he added, there are still concerns about the development of a new Covid-19 strain, the growing mortality toll, vaccine rollout pace, and the efficiency of different policy initiatives. He cautioned companies and individuals against lowering their guard.   Reference: The National (24 August 2021).”BPNG predicts headline inflation to be around 4pc”.

Recent Articles


PNG Business News - May 16, 2022

Get over it... with PNG Forest Products' NiuBridge

Photo: NiuBridge on the Boluminski Hwy, New Ireland, PNG You know how they say, “Build a bridge… and get over it”?  Well with PNGFP NiuBridge you don’t have to build it, because it’s already built! These expertly designed and engineered modular bridges are prefabricated to your specifications by PNG Forest Products. With a design life of 50+ years and installed cost base typically under half that of equivalent concrete or steel, NiuBridge is the ideal, most cost-effective solution for bridging installations in Papua New Guinea.  The NiuBridge System includes deck, girders, kerbing and accessories, and comes with a pre-applied bitumen surface. Little maintenance is required thanks to PNGFP’s unique veneer preservation treatment, ensuring complete protection from termites and rotting. NiuBridge is manufactured from PNG plantation pine to both AS/NZS 2269 and AS/NZS 1604 standards and exploits the advantages of natural timber, which is not subject to fatigue failure, unlike other materials such as steel and concrete. Available in single lane, dual lane, or custom design, NiuBridge is suitable for a range of load conditions including Austroads T44 and AS 500 Bridge Design.  NiuBridge and sister product NiuDeck are widely used by local and state governments across Australia. The peak body for the timber industry in Queensland has welcomed these products as a demonstration of the versatility and innovation of using Engineered Wood Products in bridge construction. “Using prefabricated timber systems in bridges is gaining greater market recognition due to their inherent strength, light weight and low carbon emissions footprint compared to other construction materials”, said the CEO of Timber Queensland, Mick Stephens. So next time you need to get over it, don’t waste valuable time and loads of money building a bridge. Buy a NiuBridge and get over it sooner and more cost effectively!


PNG Business News - May 16, 2022

Need help with to live, work and study in Australia and with student enrolments in EQI accredited schools? Ask Migration Plus!

Photo credit: Migration Plus Migration Plus is a leading Migration firm in Cairns, in the Far North Queensland region providing professional migration advice to students, individuals, government, businesses and corporate groups including the mining, hospitality, tourism, agricultural and air services industries. Migration Plus are also Education Agents with Qualified Education Counsellors on their team and they represent a number of reputable universities and colleges across Australia, including Education Queensland International (EQI) for student enrolments.  They work closely with EQI and have successfully assisted PNG students enrol in schools across Queensland and also assisted with visa applications for the students for many years.   With Australian borders opening to international visitors, temporary workers and international students, they can assist you with all migration matters for your business and family to visit, work or study in Australia.  Now is the time to start your children’s enrolment to study in any of the EQI’s accredited schools from Prep to Year 12.  Education Counsellors at Migration Plus can assist your children’s enrolment for Year 10, Semester 2, the important pathway into senior high school subjects through the Senior Education and Training Plan. Semester 2 commences in July 2022. With an in-depth knowledge of migration law, their specialist team provides a complete solution to your migration requirements and coordinate all facets of your migration needs. The Migration Plus team is very passionate about what they we do – the rewards of being able to assist in changing lives and helping clients achieve their goals is first and foremost.  With over 90 years of combined experience available to you, you can count on their highly specialised team for accurate advice. Contact the Specialist team for further information.


Marcelle P. Villegas - May 16, 2022

Australia Opens Its Doors to International Students

Photo credit: Education Queensland International “International students are an important part of the Australian community, and we are excited to welcome them back to our classrooms, campuses and communities.”  This was the announcement posted on their website by the Australian Government last February to herald the reopening of international travel to students. “Australia’s borders are open to fully vaccinated international students and Temporary Graduate (subclass 485) visa holders.” [1] “From 21 February 2022, all visa holders who are fully vaccinated for international travel purposes can travel to Australia without a travel exemption. Unvaccinated visa holders will still need to be in an exempt category or hold an individual travel exemption to enter Australia.” [2] The Australian Government said that international students will be subject to Australian Government border restrictions and any State and Territory quarantine and testing requirements. Quarantine and testing arrangements for State and Territories are frequently changing. Therefore, international students are advised to visit to be updated with the latest information and announcements of the Australian Government. In relation to this, the Department of Education, Skills and Employment has developed a “factsheet on the reopening of international travel to students” which is available for downloading from the website. [3] “All visa holders who are fully vaccinated in accordance with Australia’s international border entry requirements are able to arrive in Australia without needing an approved travel exemption. This includes fully vaccinated international students.” [1] Here are more important reminders from the Australian Government: People who do not meet Australia’s vaccination requirements for international travel must apply for a travel exemption to travel to Australia, unless they are in an exempt category. Visa holders who arrive in Australia may have their visa cancelled and be detained and removed if they: are not fully vaccinated for international travel purposes in accordance with Australia’s border entry requirements; or do not have a medical contraindication to a COVID-19 vaccine as defined by the Australian Government; or are not in an exempt category or hold an individual travel exemption. To be considered as “fully vaccinated for international travel purpose” to or from Australia, one should have completed a primary course of a vaccine approved or recognized by the Therapeutic Goods Administration (TGA). This includes mixed doses. The currently approved or recognised vaccines for travel are the following: Two doses at least 14 days apart of AstraZeneca Vaxzevria, AstraZeneca Covishield, Pfizer/Biontech Comirnaty, Moderna Spikevax or Takeda, Sinovac Coronavac, Bharat Biotech Covaxin, Sinopharm BBIBP-CorV (for people under 60 years of age on arrival in Australia), Gamaleya Research Institute Sputnik V, Novavax/Biocelect Nuvaxovid. Single-dose dose of Johnson & Johnson/ Janssen-Cilag COVID Vaccine are also in the list of approved and recognized vaccines. “At least 7 days must have passed since the final dose of vaccine in a course of immunisation for you to be considered fully vaccinated for international travel purposes. Mixed doses count towards being fully vaccinated as long as all vaccines are approved or recognised by the TGA.” How about exceptions for vaccination requirements and arrangement for children? “People with acceptable proof they cannot be vaccinated for medical reasons, and children under 12, can access the same travel arrangement as people who are fully vaccinated for international travel purposes.” Moreover, temporary visa holders who are younger than 18 years old at the time of departure for international travel to Australia do not require an approved travel exemption when the child is travelling with at least one adult who is fully vaccinated for international travel purposes. “Unvaccinated or partially vaccinated children aged 12-17 years old entering Australia may be exempt from passenger caps and eligible for reduced quarantine requirements. Travellers should always check the quarantine requirements for the state or territory they plan to travel to, or transit through, prior to arranging their travel.” “If the child is travelling with unvaccinated adult family members, then the entire family group will be subject to managed quarantine and passenger caps.” For more information on vaccination travel requirements, quarantine rules, and other related matter, visit   Reference: [1] [2] [3] Factsheet on the reopening of international travel to students

Join Papua New Guinea's

Business Community

Be the "First" to get our exclusive Digital Magazine & Weekly Newsletter.